Lennar Corp (NYSE:LEN) stock fell 3.97% (As on September 15, 11:50:27 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the third quarter of FY 23. The third quarter net earnings attributable to Lennar in 2023 were $1.1 billion, compared to third quarter net earnings attributable to Lennar in 2022 of $1.5 billion. Revenues from home sales decreased 2% in the third quarter of 2023 to $8.3 billion from $8.4 billion in the third quarter of 2022. Revenues were lower primarily due to a 9% decrease in average sales price of home deliveries, partially offset by an 8% increase in the number of home deliveries. New home deliveries increased to 18,559 homes in the third quarter of 2023 from 17,248 homes in the third quarter of 2022. The average sales price of homes delivered was $448,000 in the third quarter of 2023, compared to $491,000 in the third quarter of 2022. The decrease in average sales price of homes delivered in the third quarter of 2023 compared to the same period last year was primarily due to pricing to market and product mix. At August 31, 2023, the Company had $3.9 billion of Homebuilding cash and cash equivalents and no outstanding borrowings under its $2.6 billion revolving credit facility, thereby providing approximately $6.5 billion of available capacity.

LEN in the third quarter of FY 23 has reported the adjusted earnings per share of $3.91, beating the analysts’ estimates for the adjusted earnings per share of $3.47, according to Zacks Investment Research. The company had reported the adjusted revenue of $8.73 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $8.53 billion. Gross margins on home sales were $2.0 billion, or 24.4%, in the third quarter of 2023, compared to $2.5 billion, or 29.2%, in the third quarter of 2022. During the third quarter of 2023, gross margins decreased because revenues per square foot decreased year over year as the Company priced homes to market, which was partially offset by a decrease in costs per square foot due to lower material costs. In addition, land costs increased year over year.

Moreover, Deliveries increased 8% to 18,559 homes. New orders increased 37% to 19,666 homes; new orders dollar value increased 30% to $8.6 billion. Backlog was of 21,321 homes with a dollar value of $9.9 billion